Kintsugi, an AI-powered tax startup based in Silicon Valley, has doubled its valuation in just six months. The company raised $18 million in new funding, with the round led by Vertex, a global leader in indirect tax technology. With this investment, Kintsugi aims to make automated sales tax compliance easier for small and medium-sized businesses.
The rise of e-commerce and cross-border sales, combined with confusing tax rules, has created a growing demand for smarter tax software. Kintsugi helps businesses by syncing with platforms like Shopify, Stripe, Chargebee, and QuickBooks. This integration gives a complete view of revenue and allows real-time tax calculations using AI.
CEO and co-founder Pujun Bhatnagar compared their mission to what Uber did for taxis and Stripe did for payments. Kintsugi wants to simplify global tax compliance the same way. Their tool already works in 171 countries and takes just a few clicks to handle sales tax each month.
Kintsugi was founded in 2023. The team saw a turning point in 2018, when a U.S. Supreme Court ruling let states require online sellers to collect sales tax—even without a physical presence. That shift gave rise to companies like Avalara. But Kintsugi has gone further, using AI to reduce cost and complexity for modern online sellers.
Unlike traditional tax firms, Kintsugi doesn’t require a CPA. Businesses can calculate their tax liability for free. Filing is a paid feature, and there’s also an auto-remit option that files taxes automatically each month. Most users set up the system in under three minutes.
So far, the company has attracted 2,400 customers. These range from new startups to companies bringing in $50 million or more. SaaS companies make up nearly half of Kintsugi’s clients. In 2024, the platform processed 5.5 million transactions worth $7.7 billion.
Revenue has also grown fast. Last year, Kintsugi brought in $3 million. Now, they expect to pass $10 million by the end of 2025. Even better, their churn rate is just 0.1%, and profit margins exceed 93%.
The new funding round values Kintsugi at $150 million, up from $80 million in November. It includes a $15 million minority investment from Vertex, along with a strategic partnership. Vertex, which typically serves large global businesses, says Kintsugi fills a key gap by targeting smaller firms.
Chirag Patel, Chief Strategy Officer at Vertex, explained the move. His team saw Kintsugi’s strength in scaling solutions for small businesses, an area they don’t currently serve. Now, the two companies are partnering under a revenue-sharing model and IP-sharing agreement.
In addition to the equity investment, Vertex plans to invest another $10–12 million this year. The goal is to speed up AI development by tapping into Kintsugi’s innovation. Patel noted that, while Vertex is already investing in AI, working with Kintsugi allows faster progress without public market delays.
With 95 employees, Kintsugi has already expanded beyond the U.S. into Canada and Europe. Next up: South America, Africa, India, and China.
Thanks to its new backers and fast-growing customer base, Kintsugi is in a strong position. The startup is not just simplifying taxes—it’s making compliance almost invisible.
